STAND. COM. REP. NO.  680

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1003

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Higher Education, to which was referred H.B. No. 1003, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

     The purpose of this bill is to provide financial and other resources to encourage and facilitate renewable energy development by:

     (1)  Statutorily establishing the Hawaii Natural Energy Institute (HNEI) of the University of Hawaii (UH) and creating the Energy Systems Development Special Fund for the development of renewable energy and energy efficient technologies; and

     (2)  Establishing the Hawaii Biofuels Program within the Department of Business, Economic Development, and Tourism (DBEDT), to manage the State's transition to energy self-sufficiency based in part on biofuels for power generation and transportation fuels, and creating the Biofuels Development Revolving Loan Fund, to be administered by the Hawaii Strategic Development Corporation.

     The Hawaiian Electric Company, Inc., and Hawaii Energy Policy Forum testified in support of this bill.  HNEI supported the intent of this measure.  The Department of Budget and Finance opposed this bill.  DBEDT, the Public Utilities Commission, and UH Environmental Center offered comments.

     Your Committee has amended this bill by:

     (1)  Adding provisions to require DBEDT to develop and prepare a bioenergy master plan that will set the course for the coordination and implementation of policies and procedures to develop a bioenergy industry in Hawaii;

     (2)  Inserting an appropriation for the development and preparation of the bioenergy master plan;

     (3)  Changing all the appropriation amounts to $1 to encourage further discussion; and

     (4)  Making technical, nonsubstantive amendments for clarity, consistency, and style, including changing the purpose language to reflect the amendments made to the bill.

     As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1003, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 1003, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Higher Education,

____________________________

JERRY L. CHANG, Chair